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The New York Times Company Reports 2012 Third-Quarter Results

The New York Times Company, a leading global, multimedia news and information company with 2011 revenues of $2.3 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, NYTimes.com, BostonGlobe.com, Boston.com and related properties. The Company’s core purpose is to enhance society by creating, collecting and distributing high-quality news and information.

Includes $6.7 million of accelerated depreciation expense in the first quarter of 2012 for certain assets at the Worcester Telegram & Gazette’s facility in Millbury, Mass., associated with the consolidation of most of its printing into The Boston Globe’s facility in Boston, Mass., in the second quarter of 2012.

(c)

In the second quarter of 2011, the Company recorded a $9.2 million non-cash charge for the write-down of certain assets held for sale.

(d)

In the second quarter of 2011, the Company recorded a $4.2 million charge for a pension withdrawal obligation under a multiemployer pension plan at The Boston Globe.

(e)

In the second quarter of 2012, the Company recorded a $37.8 million gain on the sale of its remaining 210 units in Fenway Sports Group. In the first quarter of 2012, the Company recorded a $17.8 million gain on the sale of 100 of its units in Fenway Sports Group.

In the third quarter of 2011, the Company recorded a $65.3 million gain on the sale of 390 of its units in Fenway Sports Group. In the first quarter of 2011, the Company recorded a $5.9 million gain on the sale of a portion of the Company’s interest in Indeed.com.

(f)

In the first and third quarters of 2012, the Company recorded a $4.9 million and $0.6 million non-cash charge, respectively, for the write-down of certain investments.

(g)

In the third quarter of 2011, the Company recorded a $46.4 million charge in connection with the prepayment of its $250 million 14.053% notes.

(h)

On September 24, 2012, the Company completed the sale of the About Group, consisting of About.com, ConsumerSearch.com, CalorieCount.com and related businesses. The results of the About Group have been classified as discontinued operations for all periods presented. See Other Notes on the next page for results of operations for the About Group.

On January 6, 2012, the Company completed the sale of its Regional Media Group, consisting of 16 regional newspapers, other print publications and related businesses. The results of the Regional Media Group, which had previously been included in the News Media Group reportable segment, have been classified as discontinued operations for all periods presented. In the second quarter of 2012, the Company recorded post-closing adjustments related to the sale totaling $4.5 million after-tax.

The following table summarizes the results of operations presented as discontinued operations for both the About Group and the Regional Media Group:

Third Quarter

Nine Months

2012

2011

2012

2011

Revenues

$

25,616

$

85,666

$

81,085

$

275,206

Total operating costs

16,687

73,670

59,157

225,909

Write-down of assets

—

—

194,732

152,093

Pre-tax income/(loss)

8,929

11,996

(172,804

)

(102,796)

Income tax expense/(benefit)

2,903

2,922

(60,801

)

(3,356)

Income/(loss) from discontinued operations, net of income taxes

6,026

9,074

(112,003

)

(99,440)

(Loss)/gain on sale, net of income taxes:

Loss on sale

—

—

(4,717

)

—

Income tax benefit

—

—

(30,448

)

*

—

Gain on sale, net of income taxes

—

—

25,731

—

Income/(loss) from discontinued operations, net of income taxes

$

6,026

$

9,074

$

(86,272

)

$

(99,440)

* Tax benefit is primarily due to a tax deduction for goodwill related to the Regional Media Group sale.

THE NEW YORK TIMES COMPANY

OTHER NOTES

(Dollars in thousands)

On September 24, 2012, the Company completed the sale of the About Group, consisting of About.com, ConsumerSearch.com, CalorieCount.com and related businesses. The results of the About Group for each quarter and the first nine months of 2012, and for each quarter and annual period of 2011, reported as discontinued operations, are summarized below.

2012

First

Quarter

Second

Quarter

Third

Quarter

Nine

Months

Revenues

$

23,944

$

25,410

$

25,616

$

74,970

Total operating costs

16,948

17,505

16,687

51,140

Write-down of assets

—

194,732

—

194,732

Pre-tax income/(loss)

6,996

(186,827

)

8,929

(170,902

)

Income tax expense/(benefit)

2,675

(65,643

)

2,903

(60,065

)

Net income/(loss)

$

4,321

$

(121,184

)

$

6,026

$

(110,837

)

2011

First

Quarter

Second

Quarter

Third

Quarter

Fourth

Quarter

Full

Year

Revenues

$

31,142

$

27,844

$

25,724

$

26,116

$

110,826

Total operating costs

16,995

16,369

16,302

17,809

67,475

Write-down of assets

—

—

—

3,116

3,116

Pre-tax income

14,147

11,475

9,422

5,191

40,235

Income tax expense

5,433

4,407

3,619

1,994

15,453

Net income

$

8,714

$

7,068

$

5,803

$

3,197

$

24,782

THE NEW YORK TIMES COMPANY

RECONCILIATION OF NON-GAAP INFORMATION

(Dollars in thousands)

In this release, the Company has included non-GAAP financial information with respect to diluted loss per share from continuing operations excluding severance and special items, operating profit before depreciation, amortization, severance and special items (if any) and operating costs before depreciation, amortization, severance and raw materials. The Company has included these non-GAAP financial measures because management reviews them on a regular basis and uses them to evaluate and manage the performance of the operations. Management believes that, for the reasons outlined below, these non-GAAP financial measures provide useful information to investors as a supplement to reported diluted earnings/(loss) per share from continuing operations, operating profit/(loss) and operating costs. However, these measures should be evaluated only in conjunction with the comparable GAAP financial measures and should not be viewed as alternative or superior measures of GAAP results.

Diluted earnings/(loss) per share from continuing operations excluding severance and special items provide useful information in evaluating the Company’s period-to-period performance because it eliminates items that the Company does not consider to be indicative of earnings from ongoing operating activities. Operating profit/(loss) before depreciation, amortization, severance and special items (if any) is useful in evaluating the Company’s ongoing performance of its businesses as it excludes the significant non-cash impact of depreciation and amortization as well as items not indicative of ongoing operating activities. Total operating costs include depreciation, amortization, severance and raw materials. Total operating costs excluding these items provide investors with helpful supplemental information on the Company’s underlying operating costs that is used by management in its financial and operational decision-making.

Reconciliations of these non-GAAP financial measures from, respectively, diluted (loss)/earnings per share from continuing operations, operating profit and operating costs, the most directly comparable GAAP items, are set out in the tables below.

Reconciliation of diluted loss per share from continuing operations excluding severance and special items

Third Quarter

2012

2011

% Change

Diluted (loss)/earnings per share from continuing operations

$

(0.02

)

$

0.04

*

Add:

Severance

0.01

0.01

Special items:

Gain on sale of investment

—

(0.24

)

Premium on debt redemption

—

0.18

Diluted loss per share from continuing operations excluding severance and special items

$

(0.01

)

$

(0.01

)

—%

* Represents a decrease in excess of 100%.

THE NEW YORK TIMES COMPANY

RECONCILIATION OF NON-GAAP INFORMATION (continued)

(Dollars in thousands)

Reconciliation of operating profit before depreciation & amortization, severance and special items